Airlines to charge for food, seats and other facilities to up ancillary income

[flee 5]

EMIRATES, the world’s largest airline by international passenger traffic in 2015 which saw a 75% drop in profit for the six months to September this year, is now charging a seat assignment fee for its lowest price fares.

Come Jan 11, British Airways will start charging for snacks and drinks for its European flights on economy class, complimentary now, on short-haul flights defined as five hours or less.

This is part of the plan to grow ancillary income, which is non-ticket sources such as baggage fees, on-board food and services, seating, selling frequent flier miles to parties and even early boarding.

Ancillary revenue for long was the domain of low-cost carriers (LCCs), but increasingly, full-service carriers (FSCs) are into the game, given the handsome returns.

Why the FSCs want to be part of this is due to depressing yields and intense competition. The new wave of digitalisation has also opened new channels for them to sell services.

More:

http://www.thestar.com.my/business/business-news/2016/12/02/airlines-ancillary-income-looking-good/

[Lim Kar Yong 0]

Even Emirates is charging selection of seats for lowest priced fares!

[flee 5]

Can't call them FSCs - they don't offer full service for the fare anymore!

[JuliusWong 0]

Soon all FSC will charge minimal, bare fares for seat only with seat belt and, access to toilet and oxygen mask. The rest comes with a price tag.......

[Y. J. Foo 0]

Soon all FSC will charge minimal, bare fares for seat only with seat belt and, access to toilet and oxygen mask. The rest comes with a price tag.......

Funny you did not mention life vests...

 

"Ladies and gentlemen, we are going to ditch our aircraft in the middle of the ocean. Limited amount of life vests are available for bidding right now. Biddings are only available for debit card users. Thank you for flying with us today and good luck."

[jahur 0]

ME carriers i think QR and EY have better hard products and services onboard except lacking higher opportunities to ride wider dugong cabin emirates offers.I believe emirates is over expanding.

[Mr.Bandit 0]

That's why EK still stuck at 4 star airline why other ME carriers such as EY and QR already got 5 star

[Kee Hooi Yen 0]

More ....

 

Hot meal - $5 each (no cutlery)

Cutlery - $1 per set

Cabin / seat cleaning surcharge - $2

Reading light - $3 every 10 minutes

Cabin crew attendance - $2 per call

Pilot PA announcements - consultation fee $3 per minute

 

Aircraft surcharge - $5 for aircraft less than 1 year old ; $4 for 2-3 years old ; $3 for 4-6 years old ; $2 for 6-10 years old ; $1 for over 10 years old

 

For window seat pax :

Seaview surcharge for flights over ocean during daytime - $10

City view surcharge for flights over cities - $8

 

Emergency slide - $3 per ride

Life raft - $5 -$10 per ride (depends on duration)

 

No cash payment. Credit card payments attract 0.5% surcharge

Edited December 2, 2016 by Kee Hooi Yen

[BC Tam 2]

Mr Kee,

Can we assume those charges are quoted in uncle Sam's greenback terms ?

Vouchers or mileage redemptions ? Discount codes applicable ?

[flee 5]

OPEC Cut May Call Time on In-Flight Free Drinks

 

• Decades-old freebies unsustainable for some as fuel surges 30%
• Fuel rebound threatens five-year run of industry profit growth

Some of Asia’s marquee airlines that spoil passengers with free alcohol and in-flight entertainment may soon have to kick the habit.

The on-board giveaways, famously rolled out to every passenger in the 1970s by Singapore Airlines Ltd., will be unsustainable for some carriers after OPEC’s production cuts announced last week drive up the cost of fuel, according to aviation analysts. Other options include cutting unprofitable routes, retiring gas-guzzling aircraft and raising fares.

In order to survive, some Asian airlines may be forced to ape U.S. low-cost carriers and charge for extras -- ranging from food and alcohol to checked-in baggage -- that have been taken for granted on long-haul flights for decades, according to Mathieu De Marchi, a Bangkok-based aviation consultant at Landrum & Brown.

“More full-service airlines in Asia Pacific might consider doing the same,” he said, declining to pick out the carriers in the region most likely to make customers pay.

Making money out of so-called ancillary services emerged among traditional U.S. carriers following the global financial crisis, when their losses ballooned. Delta Air Lines Inc. -- profitable every year since 2010 -- now employs the strategy to good effect, De Marchi said.

More: https://www.bloomberg.com/news/articles/2016-12-05/free-wine-endangered-on-asian-marquee-airlines-after-opec-accord

 

[Amirul Mazlan 0]

Fuel prices high, surcharge to keep up with costs.

 

Fuel prices low, to charge on add ons to keep up with competition.

[flee 5]

Yes, they are just trying to find excuses to boost yield.

 

Nowadays, airlines have hedged fuel - so it is not as easy to impose fuel surcharges these days. That is probably why they are looking at ancillary charges.